Australian building approvals fell 3.3% in June (market +2.0) with private housing approvals down 2.5%. This is the third month in a row and follows a revised 6.4% drop in May. The median market forecast was for building approvals to have risen 2 per cent in the month.
RBA
The RBA kept the official cash rate at 4.50% as expected. In the accompanying Statement, the RBA appeared comfortable with its current settings for policy, as the recent CPI was in line with its forecasts. On the economy, the RBA noted that the labour market has continued to firm gradually and wages growth has picked up, but households remain cautious and house price growth has eased. Expectations are for the next tightening to be at the end of the year after the next CPI figures at the end of October paint a clearer picture.
